Trump Proposes 100 Percent Tariff on Microchips with US Production Exemption

The President of the USA, Donald Trump, says that he plans to introduce 100-percent tariffs on microchips and semiconductors, but emphasizes that companies that move production to the USA are exempt. At the same time, Apple's CEO Tim Cook announces that the technology giant will invest an additional 100 billion dollars to increase manufacturing in the USA.

» Updated: August 07 2025

» Published: August 06 2025

Trump Proposes 100 Percent Tariff on Microchips with US Production Exemption
Photo: Alex Brandon/AP/TT

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We will introduce a very high tariff on microchips and semiconductors, but the good news for companies like Apple is that if you build in the USA, or have committed to building in the USA, then there will be no fee, says Trump to reporters at the White House.

The President says that companies can avoid the tariffs even if they have not yet started production. It is enough to have committed to "build" in the USA and thus create jobs in the country.

Very unclear

But it is unclear how Trump intends the exceptions to be designed and which companies qualify.

Many large companies, including the world's leading manufacturers of semiconductor circuits, such as Taiwanese TSMC and South Korean Samsung, have already publicly promised to expand production in the USA.

Trump does not specify a timeframe for when the specific tariffs on the products important to the USA, which can include everything from cheap home electronics to advanced AI chips, may be introduced.

Threatened Apple

Trump has also threatened Apple with high tariffs if the company does not move more of its production to the USA. Apple's investment of 100 billion dollars includes a new program designed to do just that.

The iPhone manufacturer has also earlier this year promised to increase its domestic investments by 500 billion dollars. The figure is based on mostly already known investments and plans, so the actual increase was only 39 billion dollars, writes Bloomberg.

But overall, Wednesday's announcement from Apple, which was presented with CEO Tim Cook on site at the White House, is a commitment of 600 billion dollars, equivalent to almost 5.8 billion kronor.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers
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